BAE Systems Hägglunds: Scaling Production for the CV90 and Beyond

Introduction

With a substantial order backlog featuring approximately 600 CV90 infantry fighting vehicles and an equal number of BvS10 all-terrain vehicles, BAE Systems Hägglunds’ facility in Örnsköldsvik, Sweden, is operating at full capacity. Efforts are underway to enhance production capabilities further, making this a pivotal period for the manufacturer.

Demand and Production Expansion

During an interview at DSEI 2023, Tommy Gustafsson-Rask, President of BAE Systems Hägglunds, addressed the pressing need for increased production capacity. Although the specific metrics of scale-up were not disclosed, he highlighted that the facility is on track to achieve full operational capability by 2026.

• Global Trends: The rapid evolution of geopolitical landscapes has amplified demand for advanced military systems.
• Investment Optimization: While current investments are being optimized, additional capital is being considered to bolster capacity.

Current Programs

The Örnsköldsvik plant is engaged in multiple programs aimed at upgrading existing CV90 platforms for military clients, including:

• CV90 Upgrades for Finland and Switzerland: These are nearing completion.
• Modernization for Sweden: Focused on transforming older models into new variants.
• Dutch Mid-Life Upgrade Program: Concentrating on new turret construction.

Diversification of production is also key, with new capabilities being established in both the Czech Republic and Slovakia to alleviate pressure on the primary facility.

The Supply Chain Equation

BAE Systems Hägglunds recognizes that boosting production extends beyond in-house manufacturing. The synergy between the original equipment manufacturer (OEM) and its supply chain is critical.

• A-Level Suppliers: The main components—such as weaponry, engines, and transmission systems—are meeting demand effectively, although challenges persist.
• B-Level Components: Turret structures and cabling, predominantly produced by third-party suppliers, require stringent oversight.
• C-Level Components: Commercial Off-The-Shelf (COTS) items are increasingly being utilized, diversifying sourcing options further.

The push towards dual and potentially triple sourcing for smaller components aims to stabilize supply and support local content requirements, enhancing collaborative defense relationships.

International Collaborations and Local Production

BAE Systems is capitalizing on new contracts to establish assembly operations within customer nations, offering benefits both financially and strategically:

• Czech Republic Contract: A US$ 2.2 billion deal for 246 CV90 Mk IV vehicles, with a portion scheduled for assembly in Sweden.
• Slovakia Initiative: Following a US$ 1.37 billion contract for 152 CV9035 vehicles, local assembly will begin soon.

By relocating aspects of production to customer nations, BAE Systems minimizes investment burdens in Sweden while facilitating the delivery of required capabilities ahead of timelines.

Technological Advancements in the CV90 Mk IV

The continuous evolution of the CV90 line reflects the integration of emerging technologies to enhance combat effectiveness. Noteworthy enhancements in the Mk IV include:

• Advanced Surveillance Capabilities: The reconnaissance variant features a telescopic mast equipped with a sophisticated sensor suite, capable of integrating artificial intelligence-driven functionalities.
• Layered Defense Systems: The new iteration allows for dynamic drone detection and response capabilities, contributing to a multi-dimensional defense strategy against aerial threats.

Additional innovations are in development, such as drone integration and improved sensor fusion, reflecting lessons learned from ongoing global conflicts.

Future of Joint Procurement Agreements

The recently signed Six Nations agreement, involving Sweden, Norway, Finland, Lithuania, Estonia, and the Netherlands, lays the groundwork for collaborative procurement efforts. Each partner nation anticipates acquiring several hundred units, with a collective aim to solidify defense interoperability across the board.

• High Commonality: The endeavor focuses on achieving an impressive 95-98% commonality in specifications, primarily to streamline training and logistical support.

Conclusion

As the CV90 continues its legacy as a leading infantry fighting vehicle in Europe, BAE Systems Hägglunds remains committed to advancing both production capabilities and technological sophistication. The intersection of international collaboration, local production, and ongoing R&D will be critical as military requirements evolve in an increasingly complex global landscape.